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Virgin begins services in Canada

Richard Branson of Virgin Mobile launches in CanadaSir Richard Branson and his team from Virgin Mobile launched their phones and services in Canada on Tuesday. Sir Richard, in his usual flamboyant style, was dressed in a super hero outfit and drove a monster truck over three parked cars. He said he promises to “crush” his Canadian competitors.

Virgin, a UK company, has taken its cell phone business to the United States and Australia in recent years and has done quiet well with its focus on the 18 to 34 year old market. Virgin’s aggressive and edgy marketing style are just the touch that may move their target audience away from the more sober TELUS, Bell, and Rogers.

Virgin will focus on prepaid services to Canadians. Customers will have to buy a Virgin handset, then pay 25¢ per minute for the first five minutes each day, and 15¢ per minute for the rest of the day.

A $25 “Monthly Pass” will get customers 20¢ per minute for the first five minutes each day, and 10¢ per minute for the rest of the day.

Rogers Wireless vice-president John Boynton was dismissive of Virgin’s plans for the prepaid market. “People don’t talk that much anyways on pre-paid in Canada. Interesting plan for the U.S. or the U.K. but consumption patterns are clearly different here,” Boynton said.

Market consultants agree that prepaid customers tend to be less profitable than customers who sign long-term contracts, but they also know that Virgin Mobile’s customers tend to have higher average revenue per user (ARPU) than the typical prepaid customer.

Unfortunately, the handset lineup is a little sparce with only 3 handsets being offered: Audiovox 8615, Nokia 6015i, and the Audiovox 8910.

We have faith that Sir Richard will soon offer us wee colonials some of the hot handsets that Virgin Mobile UK is selling.

Welcome to Canada Virgin.

Posted by Darrell on March 02, 2005 in Cell Phone News

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